People often delay filing bankruptcy because they are afraid of how long bankruptcy will show up on their credit report. How long it stays on your credit report depends on which chapter of bankruptcy you file. Most individuals or small businesses file either Chapter 7 bankruptcy (straight bankruptcy) or Chapter 13 bankruptcy (debt reorganization.) [...]
In this modern world, your credit score affects many things. Your credit rating determines how much you pay to finance a home and a car. The cost of other necessary services, such as insurance and cell phone charges, may also be increased if your credit score is low. People considering bankruptcy worry about how [...]
Everyone knows that high levels of stress can interfere with the way you function. Lack of sleep, distraction, and foggy brain are just some of the symptoms of too much stress. A recent Chinese study found that getting rid of debt improves brain functioning. Participants were tested before and after their debt was paid off [...]
So many factors must align for a small business to work. 50% of small businesses fail. Small businesses are the backbone of the US economy. Bankruptcy law favors small businesses. If the majority of your debt is business debt, no means test is required. Bankruptcy may help you bounce back after a business failure. [...]
How do I decide whether I should file bankruptcy? Deciding to file bankruptcy is not easy. You beat yourself up or feel ashamed over past financial mistakes. You want to repay your debt. Sadly, some people struggle for years trying to pay back debt before facing the decision that bankruptcy is needed. Be realistic. [...]
Summary: The Bankruptcy Code requires most debtors to take the 'Means Test.' While the details are complex, most people pass without issue. This article reviews how debtors get two chances to pass the Means Test. The "Means Test" One of the primary issues in a consumer bankruptcy case is whether the debtor passes the [...]
SUMMARY: Student loans can be discharged in bankruptcy only upon proof of undue hardship. The standard of evidence required is extremely high. Even where the student loan is not dischargeable, bankruptcy may help some by discharging other debt or restructuring debt, to make money available to pay the student loan. Don't Do Nothing. Taking [...]
Summary: Certain types of income (mainly social security and veterans disability) is excluded from the means test. Some people are not required to take a means test at all. Income That Does Not Count Towards Means Test Your household income is used to determine whether you have enough money to pay back a significant [...]
SUMMARY: Obtaining credit after bankruptcy is possible. There will be a waiting period before you can qualify for big-ticket items, such as a home or car. Other factors, such as income and your credit management after bankruptcy will also impact qualifying for new credit. After filing bankruptcy, take steps to improve your credit. Make sure [...]
With the declining economy and lack of jobs, more people are going back to school. They hope more education will qualify them for a higher-paying job. They live on student loans and borrow to pay all expenses. Unfortunately, more education is no longer a guarantee of a higher-paying job or even a job. Before [...]